State Bank decides to cut interest rates by 1.5%
The State Bank of Pakistan decided to reduce interest rates by another 150 basis points to 11%.
In a tweet on the social networking site, the central bank said: "The Monetary Policy Committee meeting revealed that the Coronavirus epidemic is a highly uncertain situation in how it affects Pakistan and the global economy."
1/ MPC has decided to cut the policy rate by a further 150 basis points to 11 percent.— SBP (@StateBank_Pak) March 24, 2020
It noted considerable uncertainty about how the Coronavirus outbreak would impact the global economy and Pakistan.
"The last meeting also considered new information regarding the domestic and global situation, after which it was decided to increase interest rates in view of the outlook for growth and inflation in the country," the statement said.
It should be noted that a week ago, the State Bank had announced interest rate cut by 75 basis points to 12.5%, citing a reduction in inflation in the country.
The State Bank also announced measures to deal with the economic and health problems caused by the Coronavirus.
In a statement issued by the central bank, it was stated that the 'Zari Policy Committee' has decided to reduce the policy rate by 75 basis points to 12.50% which is the recent slowdown in commodity prices, lowering prices expectations, global The decline in oil prices on the surface and the rise in external and domestic demand due to the Coronavirus are a reflection of the slowing of inflation. '
"In terms of inflation, it is expected that the State Bank will remain within the forecast of 11-12 per cent and fall within the mid-term target of 5 to 7 per cent," the statement said.